Readers Comment on 'New CFPB Forms Might Not Be Good for Brokers'
December 5, 2013 2:20 PM
A pass through charge
STEVEN H: I don't agree! Lender paid compensation is part of the origination fee, simply because the amount is paid by the lender is irrelevant as it's actually a pass through charge paid really by the borrower for a given interest rate!(Graphic: Fotolia)
They are the same thing
BELINDA J: What is the service release premium then? Is that not a pass through charge really paid by the borrower in the given interest rate? It is the same thing and always has been!(Graphic: Fotolia)
Helping the borrower
MARCIA W: The yield spread premium and/or SRP are there for a purpose and are necessary if used properly. In some cases the borrower may not be able to buy a home if they need help with closing costs and can qualify for a higher rate to subsidize those costs.(Graphic: Fotolia)
Save brokers from extinction
JOHN M: How about the back end fees that a banker makes that don't ever see an origination box? The banks get fat on this all day long, they don't have to disclose this on a good faith estimate, nor does it factor into the 3% rule. My call to the consumer, don't let the mortgage broker go extinct. (Graphic: Fotolia)
Changing the way brokers disclose
KEVIN T: Per my conversation with CFPB, the new forms will do away with the way we disclose fees on the current GFE as a mortgage broker. On lender paid transactions, you only put the net amount on the loan estimate. The full lender paid comp will be listed on the closing disclosure, but not in the cost section. It will be off in the left side, with only the net amount listed in the cost column. (Graphic: Fotolia)
Can CFPB put two and two together?
MICHAEL C: Let's hope the CFPB can put two and two together and acknowledge that borrower paid and lender paid are exactly the same. Then they can correctly represent to consumers that the exact same loan is not treated differently based upon the origination source, thus ending the fraud that confuses the consumer and impedes their effectively shopping for a loan.(Graphic: Fotolia)
